For those of you reporting in game lag I have a few questions:
1) Are you primarily experiencing server lag such as delays in chat, finishing actions, moving items around your inventory, seeing other players skip around and so on?
2) Or are you experiencing slow frame rates and a choppy mouse cursor?
3) If you are experiencing actual lag, does this seem to occur in spikes (such as every 5 minutes)? Or does it occur constantly?
We're working on several different major issues right now and our next update will feature some major server revisions to deal with lag. We are also working on some rendering optimizations that will improve framerate, but those will take a while longer to implement.